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Resource America (Resource America) Financial Strength : 0 (As of Jun. 2016)


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What is Resource America Financial Strength?

Resource America has the Financial Strength Rank of 0.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Resource America's Interest Coverage for the quarter that ended in Jun. 2016 was 4.18. Resource America's debt to revenue ratio for the quarter that ended in Jun. 2016 was 0.19. As of today, Resource America's Altman Z-Score is 0.00.


Competitive Comparison of Resource America's Financial Strength

For the Real Estate Services subindustry, Resource America's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Resource America's Financial Strength Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Resource America's Financial Strength distribution charts can be found below:

* The bar in red indicates where Resource America's Financial Strength falls into.



Resource America Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Resource America's Interest Expense for the months ended in Jun. 2016 was $-0.43 Mil. Its Operating Income for the months ended in Jun. 2016 was $1.81 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2016 was $20.27 Mil.

Resource America's Interest Coverage for the quarter that ended in Jun. 2016 is

Interest Coverage=-1*Operating Income (Q: Jun. 2016 )/Interest Expense (Q: Jun. 2016 )
=-1*1.814/-0.434
=4.18

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Resource America's Debt to Revenue Ratio for the quarter that ended in Jun. 2016 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2016 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0.02 + 20.272) / 104.556
=0.19

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Resource America has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Resource America  (NAS:REXI) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Resource America has the Financial Strength Rank of 0.


Resource America Financial Strength Related Terms

Thank you for viewing the detailed overview of Resource America's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Resource America (Resource America) Business Description

Traded in Other Exchanges
N/A
Address
Resource America Inc is Delaware Corporation. It is an asset management company that uses industry specific expertise to evaluate, originate, service and manage investment opportunities through its real estate, commercial finance and financial fund management subsidiaries. As a specialized asset manager, it develops investment funds for outside investors for which the Company provides asset management services, typically under long-term management arrangements either through a contract with, or as the manager or general partner of, its sponsored investment funds. In its real estate segment, it focuses on acquiring and managing a diversified portfolio of commercial real estate and real estate related debt that has been significantly discounted due to the effects of current economic conditions and high levels of leverage. In its financial fund management segment, it focuses on the he sponsorship and management of issuers of collateralized loan and debt obligations. The Company has operations in New York, Philadelphia, Los Angeles, London, Singapore and Sydney. In its real estate operations, the Company concentrates on the ownership, operation and management of multifamily and commercial real estate and real estate mortgage loans including whole mortgage loans, first priority interests in commercial mortgage loans, known as A notes, subordinated interests in first mortgage loans, known as B notes, mezzanine loans, investments in discounted and distressed real estate loans and investments in value-added properties. The Company faces competition from other asset holding companies in various areas.
Executives
Michael J Bradley director 1370 SOUTH LEOPARD ROAD, BERWYN PA 19312
Richard Jr Reiss director 1001 PARK AVE, NEW YORK NY 10028
Jeffrey F Brotman officer: Executive Vice President 1845 WALNUT STREET, 10TH FLOOR, PHILADELPHIA PA 19103
Jeffrey D Blomstrom officer: Senior Vice President C/O RESOURCE AMERICA, INC., 717 FIFTH AVENUE, 14TH FLOOR, NEW YORK NY 10022
Thomas C Elliott officer: SVP & CFO 1845 WALNUT STREET, 18TH FLOOR, PHILADELPHIA PA 19103
Hersh Kozlov director WOLF BLOCK SCHORR & SOLIS, 1940 RTE 70 E, CHERRY HILL NJ 08003
Carlos C Campbell director C/O 1845 WALNUT STREET 10TH FLOOR PHILADELPHIA PA 19103
Edward E Cohen director RESOURCE AMERICA INC, 1845 WALNUT ST, PHILADELPHIA PA 19103
Jonathan Z Cohen director, officer: CEO & President 1845 WALNUT STREET, 10TH FLOOR, PHILADELPHIA PA 19103
Leon G Cooperman 10 percent owner 7118 MELROSE CASTLE LANE, BOCA RATON FL 33496
Robert L Lerner director C/O DPT CAPITAL MANAGEMENT, LLC 213 NASSAU STREET PRINCETON NJ 08542
Raging Capital Management, Llc 10 percent owner TEN PRINCETON AVENUE, PO BOX 228, ROCKY HILL NJ 08553-0228
Raging Capital Master Fund, Ltd. 10 percent owner C/O OGIER FIDUCIARY SERVICES (CAYMAN), 89 NEXUS WAY, CAMANA BAY, GRAND CAYMAN E9 KY 1-9007
William C Martin 10 percent owner C/O RAGING CAPITAL MANAGEMENT, LLC, TEN PRINCETON AVENUE, PO BOX 228, ROCKY HILL NJ 08553
Raging Capital Fund (qp), Lp other: See explanation of responses TEN PRINCETON AVENUE, PO BOX 228, ROCKY HILL NJ 08853

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